Service tax issue - pls help

CA Final 393 views 2 replies

ultimate

proprietor

31 Points Posted on 19 February 2013

Dear friends,

My client is manufacturer, he also provides some labour services. his turnover excluding labour services is Rs.60 crores. incase of labour turnover is Rs.25 lacs. now my question is whether he will be liable to pay interest at 18% or 15% in case of delay payment of service tax. as per amendement act 2011 if the turnover is above Rs.60 lacs then interest will be charged by 18%, else 15%.

What would be the definition of turnover in this case, only labour services or it includes manufaturing material also.???

pls reply me fast

Replies (2)

Deepali Gupta

Student CA Final

72 Points Posted on 19 February 2013

only labour service to be taken in to account...... pls read such notification care fully

vinod

student

24 Points Posted on 19 February 2013

Originally posted by : ultimate
	Dear friends, My client is manufacturer, he also provides some labour services. his turnover excluding labour services is Rs.60 crores. incase of labour turnover is Rs.25 lacs. now my question is whether he will be liable to pay interest at 18% or 15% in case of delay payment of service tax. as per amendement act 2011 if the turnover is above Rs.60 lacs then interest will be charged by 18%, else 15%. What would be the definition of turnover in this case, only labour services or it includes manufaturing material also.??? pls reply me fast

The Interest rate is 18% on delayed payment of service tax. As per the Negitive List servie, the job work service (Labour work) which amount to manufacture is exempet and the job worker need not to pay service tax on that service (Labour).

There is no turnover limit for Interest.